10 Things You Need to Know About Life Insurance
10 Things You Need to Know About Life Insurance in General Life Insurance
We all know that Life Insurance is a great way to protect your family now, and even help plan for your family's financial future. As with all insurance products before you buy any kind of life insurance policy is it best to do a little research, so you can understand what kind of life insurance is best for the needs of you and your family. In no particular order here are 10 tips that will help you to better know your options when shopping for life insurance:
Like the purchase of any kind of insurance, it pays to shop around when looking for life insurance. Now it is easier then ever to shop online for Life Insurance, you can compare plans, get a free quote, even speak to an agent – all online.
2.Make Sure You Have Enough Coverage
Just having life insurance coverage isn’t always enough to make sure your family is fully protected in case of your death. You have to make sure you have enough converge so that the death benefit will provide for all of their expenses without the benefit of your income.
3.Take Care of Yourself
All life insurance policies are subject to medical underwriting- that means the healthier you are the cheaper your rates will be. Get in shape, and quit smoking, you not only will live longer you will pay less for life insurance.
When you are young and healthy, the last thing you may be thinking about is buying life insurance, but that is actually the perfect time to think about it, Rates for Life Insurance are cheaper the earlier you purchase your policy.
5.Review Your Coverage
If you already have a Life Insurance policy it is important that you periodically review your coverages. Life circumstances change and so do life insurance needs.
6.Know The Difference
Understand that there are different types of Life Insurance, such as Term Life, Whole Life, or Universal Life, Each is designed to fit different needs and different lifestyles. Get to understand the differences, and you will know which is right for you stage of life. You can get more details about the different types of Life Insurance by accessing our helpful Guide.
7.Be Aware of Payment Discounts
Before you commit to paying for your Life Insurance premiums monthly, see if your Life Insurance provider offers a discount for paying annually, many times they do.
8.Honesty is the Best “Policy”
Never lie or “fudge” the information on the medical questions on a life insurance policy application – if you are caught, not only will your policy be cancelled, you may be barred from ever purchasing another policy again, even from any other carrier - and you may be subject to criminal prosecution for insurance fraud.
9. Don’t Rely on Your Job
Some companies offer Life Insurance as a job benefit, but these policies are usually just for a year salary, and are woefully inadequate to rely on for your only Life Insurance policy. And of course such policies are tied to the job and will not be in effect if you leave that place of employment
10. More is Less
In life insurance the “cost per thousands” in coverage gets progressively less as you increase coverage. In other words if you pay $500.00 a year for a $250,000 term life insurance policy – you wont pat $1000.00 to double the coverage to $500,000.00 – in fact it usually is only a few dollars more per month.